Clearing is the correct and timely transfer of funds to the seller and securities to the buyer.
A specialized organization often acts as an intermediary, known as a clearing house, and takes on the role of a silent buyer and seller to match orders between the parties to the transaction.
Clearing is required to match all buy and sell orders to ensure a smoother and more efficient market.
When trades are not cleared, emerging trades can result in real money losses.
The clearing process protects the parties involved in the transaction by recording the details and checking the availability of funds.
Arbitrageurs are investors who exploit market inefficiencies of any kind. They are necessary to ensure that inefficiencies between markets are smoothed out or kept to a minimum.
A beneficial owner is a person who enjoys the benefits of ownership, despite the fact that the ownership of the property is registered in a different name.
A central counterparty clearing house (CCP) is an organization, usually run by a large bank, that exists in European countries to facilitate the trading of derivatives and equities.
Delivered from ship (DES) was an Incoterm (an international commercial term) that applied to both inland and ocean shipping, and often to charter shipping.
Preliminary analysis in financial markets refers to the forecasting of various indicators, economic and financial, by evaluating past and present data and parameters.
Financial Information Exchange (FIX) is an information and data protocol used to distribute price and trade information to investment banks and broker-dealers.
A good delivery is understood as an unhindered transfer of ownership of a security from the seller to the buyer in compliance with all necessary requirements.
“Holding the market” refers to an illegal trading practice that attempts to support the price of a security after negative news has been published that would otherwise cause its price to fall.
A large trader is an investor or entity whose trades equal or exceed volume and market value thresholds set by the Securities and Exchange Commission (SEC).